Short-term rental vs long-term rental: which model should you choose to optimize your real estate investment?
In 2025, rental investment remains a preferred lever for building wealth and generating income. In this context, two main strategies are opposed: short-term rentals (LCD), often implemented via platforms such as Airbnb or Booking, and long-term rentals (LLD), a classic model known for its stability. While short-term rentals are attractive because of their potentially higher profitability, long-term rentals are reassuring because of their ease of management. This article provides you with an in-depth analysis of the two models, their respective advantages and disadvantages, as well as the fiscal and legal implications, in order to help you choose the strategy that best suits your wealth goals.
Profitability: why short-term rentals attract investors
Short-term rentals are mainly characterized by their high profitability potential. Indeed, an accommodation rented by the night can generate much higher income than that of a traditional rental. For example, in a tense or tourist area, an apartment that would be rented 1,000 euros per month for long-term rentals can easily produce between 2,000 and 3,000 euros in monthly turnover in the short term, provided it maintains a good occupancy rate.
This increased profitability is also explained by the price flexibility available to the owner. He can adjust his prices according to the season, local demand or even particular events. This ability to adapt makes it possible to maximize income, which is impossible in long-term rentals, where the rent is regulated and fixed for the entire duration of the lease.
Another significant advantage of short-term rentals is the virtual absence of risks of non-payment. Indeed, travelers pay for their stay before arrival via secure platforms. Conversely, long-term rentals expose you to unpaid bills, with eviction procedures that are often long and complex.
Management: greater involvement in short-term rentals
While short-term rentals offer higher returns, they also require greater involvement. Each departure of a tenant involves cleaning, the rehabilitation of the home, and often a personalized welcome. The logistics are therefore heavier than in the context of a traditional lease, where the property is occupied on an ongoing basis.
However, there is an effective solution to alleviate this burden: call on a specialized concierge. These service providers take care of the entire management of the property (reception, cleaning, maintenance), for an average commission of 20% on the income generated. Thus, the owner can benefit from the profitability of short-term rentals while maintaining time and serenity.
Taxation: the advantages of short and long-term furnished accommodation
Taxation is a major lever in optimizing a real estate investment. On this point, furnished rentals, whether short or long, benefit from a tax framework that is much more advantageous than traditional bare rentals.
In bare long-term rentals, the income received is taxed in the property income category. The owner can deduct certain expenses, but the possibilities for optimization remain limited. The land deficit can only be attributed up to a limit of 10,700 euros per year, and fiscal profitability remains moderate.
Conversely, furnished rentals (whether short or long term) fall under the Industrial and Commercial Benefits regime (BIC). Under the micro-BIC regime, the taxpayer benefits from a flat rate allowance of 50% (or 30% for unclassified furnished tourist accommodation), but cannot deduct any real charge. On the other hand, the real regime allows the deduction of all operating expenses as well as the depreciation of the property and furniture. This possibility of amortizing your property often leads to zero tax results, and therefore to an exemption from tax on rental income for several years. The real LMNP status thus becomes a powerful fiscal tool to optimize net profitability.
Regarding the increase in value on resale, the rules vary. In LMNP, the individual capital gains regime applies, with total exemption from tax after 22 years of ownership and from social security contributions after 30 years. Above all, past amortization is not included in the calculation of capital gain, which is a considerable advantage. In LMP, on the other hand, the capital gain is calculated according to the regime for professionals, with reintegration of depreciation, except in the case of possible exemption after 5 years of activity and if the income remains less than 90,000 euros.
Regulation: the growing impact of the Le Meur law on short-term rentals
The Lemeur law, adopted at the end of 2024, provides a more stringent framework for furnished tourist rentals. In particular, it provides for a reduction in the micro-BIC tax allowance for unclassified furnished apartments, the possibility for municipalities to limit the duration of rental of main residences to 90 days per year, and a strengthened power given to general condominium meetings to prohibit short-term rentals by a two-thirds majority vote.
Faced with these restrictions, some investors are considering alternatives to continue to benefit from the advantageous taxation of furnished apartments without falling within the scope of these constraints. Among these solutions are long-term furnished rentals with a mobility lease (1 to 10 months), the request to classify the accommodation as furnished tourist accommodation to benefit from a 50% discount, or even investment in areas not subject to authorization for change of use.
Conclusion
Short-term rentals have a much higher potential for profitability than long-term rentals, provided that management constraints and the legal framework are well controlled. Thanks to the real LMNP tax regime, it often makes it possible to neutralize taxation for several years, while maximizing income. However, it requires increased vigilance in the face of constantly changing regulations. Long-term rentals, on the other hand, remain more stable, less time-consuming, but less fiscally optimised. The choice between the two will therefore depend on the management capacity, financial objectives and fiscal profile of each investor.
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